North Sea firms under pressure to cut decommissioning costs

Closer collaboration is essential to drive down the price tag for dismantling infrastructure, the UK's regulator says

The Oil and Gas Authority (OGA) says the industry must reduce decommissioning costs in the North Sea by at least 35% from forecast levels to below £39bn, but achieving that target will not be easy. In its 2017 Cost Estimate Report for UK continental shelf (UKCS) decommissioning, the regulatory body has produced a cost estimate, based on 2016 prices, ranging from ($57.74bn) £44.5bn (P10) to £82.7bn (P90), with a P50 figure-or mid-point in terms of probability-of £59.7bn. The range of figures reflects the high degree of uncertainty in submissions provided by operators to the OGA, especially for decommissioning work likely to occur after 2025. The mid-point of £59.7bn is higher than figures t